MARA Holdings, Inc. revealed a $700 million private offering of convertible senior notes on Monday to support its strategy for acquiring Bitcoin and restructuring its operations.
According to the company’s recent press release, MARA intends to use the proceeds primarily for acquiring additional Bitcoin, repurchasing 2026 convertible notes, and general corporate purposes.
MARA Holdings’ $700 Million Notes Offering
The notes, set to mature in 2030, are unsecured and will carry semi-annual interest starting March 2025.
The company retains the right to redeem portions of the notes after 2028 under specific conditions.
Today, we announced a proposed private offering of $700 million of convertible senior notes.⁰⁰Proceeds to be used primarily to acquire bitcoin, repurchase existing convertible notes due in 2026, and for general corporate purposes. https://t.co/0vg7ri8BDX
— MARA (@MARAHoldings) November 18, 2024
This offering also allows holders to convert the notes into cash, MARA common stock, or a combination of both.
Conversion will be restricted to certain events or periods until late 2029, after which it will be open until the maturity date.
According to the statement, up to $200 million of the proceeds are designated to repurchase MARA’s existing convertible notes due in 2026.
The remaining funds are allocated for acquiring Bitcoin and general operational expenses, including potential debt repayment and asset expansion.
The company anticipates that activity from holders of the 2026 notes could affect its stock price.
Those with hedged positions may unwind these during the repurchase, potentially increasing trading volumes and influencing share valuations.
“The notes will be offered and sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act,” the release reads.
Metaplanet to Raise $11.3 Million for Bitcoin Acquisition
Metaplanet recently announced plans to raise $11.3 million through a third series of ordinary bonds to support its Bitcoin acquisition.
Japanese investment firm @Metaplanet_JP launched its third bond series to raise $11.3M for Bitcoin investments, offering investors a 0.36% annual rate.#Bitcoininvestment #Metaplanet https://t.co/M5FDZTqceY
— Cryptonews.com (@cryptonews) November 18, 2024
The Japanese investment firm is issuing 1.75 billion yen worth of bonds with a 0.36% annual interest rate, set for redemption in November 2025.
Metaplanet’s director guarantees the bonds, which are not directly collateralized.
However, the land and building of Hotel Royal Oak Gotanda, owned by its subsidiary Wen Tokyo, serve as security for the bondholders.
Metaplanet’s Bitcoin holdings increased to 1,018 BTC, reflecting a $28 million valuation gain.
According to Bitcoin Treasuries, this has brought the company’s total Bitcoin investments to over $64 million.
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